INM said today that the restructuring programme for its London operation will result in redundancies across "all areas of the operation, but the majority will come from the editorial department".

The company added that a "sizeable number" will be voluntary redundancies, with "total savings in excess of £10m".

INM UK employees total 430 staff in London, of which about 230 are in editorial roles. Of the 90 proposed job cuts about 60 are thought to be editorial positions.

The company said that it is planned that the changes will be implemented by "early 2009".

INM said that its two UK national titles had been hit by the advertising downturn prompting a "major review of the papers' cost base".

The restructure will see a much greater integration between the operations of the two papers and more efficient use of technology to streamline the production process.

"As a management team, we would have been irresponsible had we not reacted to the economic conditions affecting every media business in the world, by looking at our cost base," said the INM UK managing director, Simon Kelner.

"These changes will be instrumental in helping to secure the future of these great newspapers. Independent News & Media has not wavered in its commitment to preserve the unique qualities of The Independent and The Independent on Sunday, and this cost-saving programme will ensure the papers keep their independent voice, while maintaining the quality of their journalism," Kelner added.

Ivan Fallon, the chief executive of INM UK, said that the restructure was a move that would future-proof the operation and retain "value and quality" for readers.

"This is not just another cost-cutting exercise, it will mark a step-change in using the Independent's unique pool of talent to produce great quality newspapers at the lowest possible cost," he added.

"By taking full advantage of the latest editorial systems, sharing resources across our group, downsizing our existing premises and looking at outsourcing some of our activities, we can safeguard the future of the Independent titles."

Fallon pledged that INM would "continue to produce award-winning papers for many years yet".

However, this view is at odds with dissident investor Denis O'Brien, the second largest shareholder in INM with a 26% stake, who has been demanding the sale of the London-based Independent titles.

Late last month O'Reilly revealed that the company had received offers for its 39.1% stake in APN News & Media, which owns the New Zealand Herald.

Analysts reckon the stake could be worth well over €300m (£236m). Disposing of this business would also remove a substantial chunk of APN's debts from INM's balance sheet. Selling the stake would allow the group to reduce debt from its current level of €1.4bn to under €600m.

O'Brien immediately criticized INM's move to consider selling its APNNM stake, which he described as "one of the group's best performing assets in a falling market".

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